Gold prices edged lower on Wednesday as the dollar rose after the Bank of Japan overhaul of its stimulus programme and investors awaited the US Federal Reserve’s decision on interest rates later in the day.
Spot gold fell 0.3% to $1,311.43 (£1,010.17) an ounce by 4.49am GMT and US gold futures fell the same amount to $1,314.50 (£1,012.53) an ounce.
The Bank of Japan on Wednesday adopted a target for long-term interest rates in an overhaul of its stimulus programme.
Senior Oanda market analyst Jeffrey Halley said there would be big rally in commodities if Fed chairwoman Janet Yellen announced no change in interest rates.
“We will definitely see gold and silver moving higher as well.
“There is no realistic chance of a rate hike priced into the market at the moment. If the Fed hikes interest rates this evening we would definitely see a sell-off in commodities and the emerging markets, including gold.”
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.